Breaking News
0

Gold Ends Higher, Takes Fed Minutes In Stride

CommoditiesOct 18, 2018 02:29PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Gold climbs a day after Fed minutes affirm plans for more U.S. rate hikes.

Investing.com - Gold prices rose on Thursday as bullish investors took the Federal Reserve's latest hawkish talk in stride and targeted the $1,250 level in a bid to recapture ground lost earlier in the year.

Spot bullion and gold futures were both on track for a third-straight week of gains, again defying a stronger dollar in one of the most extraordinary performances in recent times. Gold is normally a contrarian bet against the dollar.

The dollar index, a measure of the greenback's strength against a basket of six other major currencies, was up 0.3%, boosted by the Fed's release on Wednesday of minutes from its September policy meeting. The minutes showed the central bank planned to gradually increase interest rates in December and beyond.

U.S. gold futures' most-actively-traded contract, December, settled up $2.70, or 0.2%, at $1,230.10 on the COMEX division of the New York Mercantile Exchange. It was on track to a gain of 1% on the week after the three-month high of $1,236.90 hit on Monday.

"All things considered, the reaction in gold and silver to the 'more hawkish than expected' Fed stance suggests to us that precious metals have already factored in the eventuality of a return-to-normal rate structure," ADMIS, the commodity brokering arm of global commodities merchant ADM, said in a note.

COMEX silver for December initially rallied on Thursday before settling down 5.9 cents at $14.64 a pound.

After falling from a 2018 peak of $1,343.80 in February, gold returned to $1,200 in August, reaffirming its position as the safe haven of choice for risk-averse investors. Since then, it has more or less held its ground there, supported by a surfeit of geopolitical tensions, China's trade war with the United States and Italy's budget woes that could affect the eurozone. U.S. bond yields rallying to multiyear highs have also taken some wind out of the dollar's sails, propping up gold.

This week, particularly, gold has seen strong support from speculators attempting to push it to $1,250 or beyond ahead of the expiration of options on Oct. 25.

Gold Ends Higher, Takes Fed Minutes In Stride
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Serenity Ruby Cutamora
Serenity Ruby Cutamora Oct 18, 2018 3:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
go ups.
Reply
1 0
Sooraj Olinkara
Sooraj Olinkara Oct 18, 2018 3:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes It’ll. 1240, 1250 then break the roof 1290 +
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email